Universal Display (OLED) AI Stock Analysis

• Market Cap: $7.21B
• Dividend Yield: 1.12%
• Average Volume (3M): 467.19K
• Price to Earnings (P/E): 31.5
• Beta (1Y): 1.61
• Revenue Growth: 6.13%
• EPS Growth: 4.70%
• Country: US
• Employees: 468
• Sector: Technology
• Sector Strength: 94
• Industry: Semiconductors
• EPS (TTM): 1.35
• Shares Outstanding: 47,526,146
• 10 Day Avg. Volume: 390,413
• 30 Day Avg. Volume: 467,193
• PEG Ratio: 9.24
• Price to Book (P/B): 4.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 44.45
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 2.78
• Enterprise Value/Gross Profit: 14.53
• Enterprise Value/Ebitda: 6.49
• 1Y Price Target: $193.20
• Price Target Upside: 27.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 71 Outperform
• Price Target: $168.00 ▲(10.74%Upside)

Universal Display's strong financial performance and positive earnings call outlook are the primary strengths driving its stock score. Technical analysis and valuation indicate moderate concerns, reflecting a balanced view of opportunities and risks.

Positive Factors

Financial Performance

Q1 results were better-than-expected, with revenues up 1% vs. consensus -6%.

Shareholder Returns

$100M share repurchase program is another positive.

Negative Factors

Commercialization Challenges

US tariffs and slow progress in blue color material commercialization are seen as new discount factors for Universal Display Corp.

Revenue Outlook

Revenues in 2025 are expected to be down 1% to +8%, well below consensus +10.5% growth.

Universal Display Business Overview & Revenue Model

Company Description

Universal Display Corporation (OLED) is a leader in the development and commercialization of organic light emitting diode (OLED) technologies and materials. Operating primarily in the consumer electronics and lighting sectors, the company offers a broad range of OLED solutions, including proprietary technologies and high-performance materials that enhance display and lighting performance. Universal Display Corporation partners with major electronics manufacturers to integrate its OLED technologies into various devices, from smartphones to televisions and lighting products.

How the Company Makes Money

Universal Display Corporation generates revenue through a combination of licensing fees, material sales, and technology development agreements. The company licenses its OLED technologies to manufacturers, earning royalties based on the sales of OLED products that incorporate its technology. Additionally, Universal Display sells proprietary OLED materials, such as phosphorescent emitters, which are essential components in the production of OLED displays and lighting. Significant partnerships with leading electronics companies, including Samsung and LG, contribute to its revenue by ensuring its technologies are widely adopted in the industry. The company also invests in research and development to continually innovate and expand its product offerings, further driving its revenue growth.

Universal Display Financial Statement Overview

Summary

Universal Display demonstrates strong financial health with high profitability, a robust balance sheet, and solid cash flow generation. The company has increased revenue while maintaining high margins, benefiting from a debt-free balance sheet, reducing financial risk. However, cash flow growth is modest.

Income Statement

The income statement reflects strong profitability with a net profit margin of 34.28% and a gross profit margin of 77.08% for 2024. Both margins indicate efficient cost management, allowing the company to retain a significant portion of its revenue as profit. Revenue growth was 12.36% from 2023 to 2024, showing a positive growth trajectory. The EBIT and EBITDA margins are robust at 36.86%, suggesting solid operational efficiency.

Balance Sheet

The balance sheet is healthy, characterized by a debt-free status as of 2024, which eliminates financial leverage risks. The equity ratio is strong at 88.20%, indicating a solid capital structure where most assets are funded by equity. The return on equity is impressive at 13.74%, reflecting effective use of shareholder funds to generate profits.

Cash Flow

The cash flow statement shows a significant increase in operating cash flow from $154.78 million in 2023 to $253.74 million in 2024, indicating improved cash generation from core activities. The free cash flow to net income ratio is 0.95, suggesting efficient conversion of profits into cash flow. However, free cash flow growth is slightly negative due to changes in capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	648.70M	647.68M	576.43M	616.62M	553.52M	428.87M
Gross Profit	489.70M	499.22M	441.05M	488.72M	438.53M	343.39M
EBITDA	270.38M	282.94M	260.59M	309.38M	269.61M	194.71M
Net Income	229.60M	222.08M	203.01M	210.06M	184.21M	133.37M
Balance Sheet
Total Assets	1.86B	1.83B	1.67B	1.53B	1.47B	1.27B
Cash, Cash Equivalents and Short-Term Investments	571.28M	492.67M	514.12M	577.77M	663.19M	730.01M
Total Debt	0.00	19.14M	22.86M	29.04M	27.26M	8.75M
Total Liabilities	205.16M	215.81M	221.74M	257.45M	367.00M	356.51M
Stockholders Equity	1.66B	1.62B	1.45B	1.28B	1.10B	912.71M
Cash Flow
Free Cash Flow	163.66M	211.10M	28.42M	79.61M	147.55M	120.74M
Operating Cash Flow	212.15M	253.74M	154.78M	126.81M	191.10M	148.79M
Investing Cash Flow	-42.06M	-164.41M	-83.29M	-280.74M	-457.75M	391.26M
Financing Cash Flow	-86.63M	-82.33M	-72.93M	-64.64M	-51.37M	-41.66M

Universal Display Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 151.71
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OLED, the sentiment is Neutral. The current price of 151.71 is below the 20-day moving average (MA) of 155.15, below the 50-day MA of 152.57, and below the 200-day MA of 155.02, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 46.75 is Neutral, neither overbought nor oversold. The STOCH value of 21.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OLED.

Universal Display Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMBS	82 Outperform	$7.15B	34.88	19.26%	―	30.13%	-42.27%
LSCC	73 Outperform	$7.29B	140.38	7.39%	―	-29.54%	-76.42%
OLED	71 Outperform	$7.21B	31.54	14.58%	1.12%	6.13%	4.70%
Sector *	68 Neutral	¥227.94B	14.57	7.50%	2.72%	9.28%	6.70%
SMTC	60 Neutral	$4.46B	―	-93.41%	―	13.83%	88.14%
ALGM	57 Neutral	$6.77B	―	-7.09%	―	-30.91%	-148.73%
POWI	55 Neutral	$3.05B	83.50	5.03%	1.91%	-5.75%	-41.75%

Universal Display Corporate Events

Universal Display Holds 2025 Annual Meeting on June 18

Universal Display held its 2025 Annual Meeting on June 18, 2025, where 42,727,869 votes were represented. During the meeting, the election of directors, approval of executive compensation, and ratification of KPMG LLP as the independent accounting firm for 2025 were voted upon. The election of directors saw varying levels of support for each candidate, while the advisory resolution on executive compensation received significant approval. The ratification of KPMG LLP was also largely supported.

The most recent analyst rating on (OLED) stock is a Buy with a $160.00 price target. To see the full list of analyst forecasts on Universal Display stock, see the OLED Stock Forecast page.